Business Idea

Start A Fulfillment By Amazon Business

About

Starting a fulfillment by amazon business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell fulfillment by amazon service, or selling fulfillment by amazon service online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a fulfillment by amazon business ➜

Key stats

market size
$79.6B
revenue (monthly)
$105K
starting costs
$29.4K
gross margin
40%
avg product price
$40
time to build
4 months
growth
SEO
business model
Subscriptions
time investment
Side project

About

Starting a fulfillment by amazon business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell fulfillment by amazon service, or selling fulfillment by amazon service online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a fulfillment by amazon business ➜

Key stats

market size
$79.6B
revenue (monthly)
$105K
starting costs
$29.4K
gross margin
40%
avg product price
$40

 

time to build
4 months
growth
SEO
business model
Subscriptions
time investment
Side project

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $750 $7,000
Equipment & Supply Expenses $563 $5,200
Website Costs $293 $6,715
Inventory Expenses $350 $14,750
Software Expenses $150 $2,794
Advertising & Marketing Costs $0 $2,750
Other Expenses $0 $300
Business Formation Fees $5,050 $15,500
Retail Business Expenses $0 $1,200
Total Startup Costs $7,156 $56,209

Successful Businesses

Business URL Rank
Amazon search.amazondelivers.jobs #6,306
Fulfillment Bridge fulfillmentbridge.com #124,793
Kenji ROI kenjiroi.com #201,524
Forest Shipping forestshipping.com #204,550
Spreetail wearespreetail.com #269,706
TF Fulfillment tffulfillment.com #318,588
PNPLINE pnpline.com #714,387
Fulfillment Europe (Slovakia) by FHB Group fulfillmenteurope.com #1,045,656
fbainandout fbainandout.com #2,625,220
Shipping Butler theshippingbutler.com #2,625,771
Frozen Fulfillment frozenfulfillment.com #2,713,306

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Ability to start your business from home It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!
Little startup costs required The cost to start a fulfillment by amazon business costs significantly less money than most businesses, ranging anywhere from 7,156 to 56,209.
Rewarding work Starting a fulfillment by amazon business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
Scalable With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.
Traffic to your website A fulfillment by amazon business gives people a reason to visit your website and to keep coming back to you!
Cons Description
Crowded Space Competition is high when it comes to your fulfillment by amazon business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.
Finding The Right Supplier Most businesses in this space go the supplier/manufacturer route, which isn't a bad thing! However, finding the right supplier can take a lot of time, energy and trial/error. If done properly, this process can save you months (if not years) of time and energy. More on this below in the "finding a supplier" section.
Security Issues With any Saas business, data loss and security issues may arise throughout your process of building your product. It's critical that you understand exactly what you're responsible for and how to avoid potential issues down the road.
Lack of benefits With a fulfillment by amazon business, you are typically self-employed and responsible for finding your own insurance, which can be quite costly and time-consuming.
Isolation Often times, as a fulfillment by amazon business, you typically work alone and do not have much face-to-face interaction with other team members.
Taxes As a fulfillment by amazon business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

Marketing Ideas

  • 1

    Affiliate program

    Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.

    Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.

    The affiliate typically gets a unique link where clicks and conversions can be tracked.

  • 2

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

  • 3

    Social Media Advertising

    Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.

    According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.

    Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.

    Learn more about social media advertising ➜